Alphabet faces class actions over alleged Gemini 3.5 Pro delay disclosures

Allegations and proposed class period

According to scanx.trade, Kaplan Fox & Kilsheimer, Rosen Law Firm, Pomerantz, Bragar Eagel & Squire, Levi & Korsinsky, and Howard G. Smith said class actions have been filed against Alphabet for investors who bought securities during a class period running from May 19, 2026, through July 16, 2026. The firms said the suits accuse Alphabet and related defendants of making false or misleading statements about the development timeline and performance of the Gemini 3.5 Pro artificial intelligence model.

The article says the complaints focus on disclosures made before July 16, 2026. It reports that Bloomberg said on that date that Google was “months behind schedule” in delivering Gemini 3.5 Pro, described as its flagship AI model. The report, as summarized in the article, said coding work was continuing and that updated training data had produced disappointing results.

What the lawsuits say was not disclosed

The lawsuits, as described by scanx.trade, say Alphabet failed to disclose several points during the class period. Those alleged omissions included that Gemini 3.5 Pro was producing disappointing training results, that its launch would be delayed significantly, and that positive statements about Alphabet’s business, operations, and prospects lacked a reasonable basis because of those issues.

The article says the complaints also target specific management comments. On May 19, 2026, at the annual Google I/O developer conference, CEO Sundar Pichai said Gemini 3.5 Pro was “showing great improvements” compared with earlier versions and said it would launch in June 2026. Then, at a June 3, 2026 special investor call focused on AI-driven growth, management said Gemini 3.5 Flash was “now available” and expected Gemini 3.5 Pro would arrive in June.

Management statements and product timing

Scanx.trade reports that the lawsuits contend those statements left out the risk that Gemini 3.5 Pro was delivering, or could soon deliver, disappointing training results. The article says Google updated the data used to train Gemini in late June in an effort to improve the model’s skills, but the results were disappointing. It also says the lighter Gemini 3.5 Flash version was available by early June, while the Pro version was still not released by the end of the class period.

The article says Reuters later reported on September 30, 2026, that Google no longer planned to release Gemini 3.5 Pro. Scanx.trade says plaintiffs view that later development as supporting their argument that the timeline given in May and repeated in June was flawed.

Market reaction and later financial results

The article says Alphabet shares reached a class-period high of $390.13 on May 28, 2026. By the close on July 16, 2026, Class A shares had fallen to $354.46 and Class C shares had fallen to $353.58. Scanx.trade says the nearly matching declines in both share classes suggest the market viewed the delay as affecting the company broadly rather than only one share class.

The article then says Alphabet reported second-quarter 2026 results on July 22, 2026. At that time, the company lifted its expected full-year capital expenditures to a range of $195 billion to $205 billion and disclosed negative free cash flow of $5.9 billion for the quarter. It also said that, because of supply constraints, it planned to rely more on third-party capacity in the third quarter as a bridge, which would put modest pressure on margins in the near term. After that news, Alphabet stock fell $24.40, or 7.13%, to close at $317.69 on July 23, 2026.

Deadline, case status, and law firm notices

Scanx.trade says members of the proposed class have until December 1, 2026, to ask the court to appoint them as lead plaintiff. The article says that role would oversee the case for the class, but that investors do not need to seek it in order to share in any potential recovery.

The article says Rosen Law Firm told investors they may be able to pursue compensation without paying out-of-pocket fees or costs through a contingency arrangement. It said investors could contact Phillip Kim by phone or email. Bragar Eagel & Squire said investors with losses could contact partners Brandon Walker or Melissa Fortunato, and added that some firms that send notices do not actually handle securities class actions themselves.

Scanx.trade says Kaplan Fox urged investors with losses to contact Pamela A. Mayer, while Levi & Korsinsky said investors who purchased or acquired Alphabet securities during the class period could contact Joseph E. Levi. Howard G. Smith said the case, titled Stewart v. Alphabet Inc. et al., was filed on October 2, 2026, in the U.S. District Court for the Northern District of California in San Jose.

The article says the case is governed by the Private Securities Litigation Reform Act of 1995. It states that eligibility is based on purchases during the class period and that investors who sold at a loss may still qualify even if they no longer hold the stock. It also says no class has been certified yet, and until certification investors are not represented by counsel unless they retain one.